Kevin Rose, founder of Digg, has heard from sources within Apple that the company will launch its all-new iTV set top box, powered by the iOS operating system, in September for $99.

Rose posted on his blog that he believes the revamped and renamed Apple TV hardware will "change everything" for a number of reasons, including the addition of TV applications written for the iOS operating system. Like the iPhone and iPad, Apple's new iTV will have access to the App Store where users will be able to download software to run on their device, he said.

With these applications, he said, content providers will be able to provide iTV owners "a la carte" stations that Rose believes will change the way people watch content on their television.

"With Apple's iAds, content producers (eg. ABC/NBC/etc.) can directly monetize and distribute their content," he said. "This will eventually destroy the television side of the cable and satellite industry, as your only requirement to access these on-demand stations will be an internet connection. Say goodbye to your monthly cable bill."

Rose also said he has heard that the $99 device will make it easy for users to share pictures and videos "with the push of a button." He suggested the device could include a feature that would notify users when new family photos or videos are available to be viewed.

The Web entrepreneur also said the new iTV will turn Apple's iPad into a remote control, as the "preferred input device" for the set top box. The iPad will also allow users to edit videos, control games, and "extend the interactive television experience," he said. He gave an example of watching football while viewing other camera angles on the iPad.

Rose also made mention of Google TV, the search giant's already-announced Android-powered set top box set to launch this fall. He said that people should keep an eye on Google's product as well. "This is going to be a hot space in 2011," he said.

Rose has reported numerous Apple rumors in the past with varying degrees of accuracy. In 2008, Rose revealed a leaked photo of the fourth-generation iPod nano in advance.

His iPhone-related leaks have been hit or miss, as he correctly predicted the addition of copy and paste to iOS 3.0, but incorrectly said that the iPhone 3G would do video chat. That feature eventually came two years later with the iPhone 4, in the form of FaceTime.

Late last year, Rose also said the then-unannounced iPad would have an emphasis on e-books, and would prove to be a "Kindle killer," referring to Amazon's e-ink device. Apple's iBooks application was available at launch for the iPad.